Which of the Following About Australian Treasury Bond Futures Is

question 88

Multiple Choice

Which of the following about Australian Treasury bond futures is NOT correct?

• A) The Australian Treasury bond futures contract of 8 per cent is quoted as 92.0.
• B) If a dealer buys a futures bond contract at 92.750 and sells at 93.500, she makes a profit.
• C) If a dealer buys a futures contract at 7 per cent and sells at 8 per cent, he makes a profit.
• D) Futures are quoted as index of 100 minus the yield so that the dealer can buy high and sell low.

---

Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like willingness to pay, market segment, or purchase volume.

Higher Profits

An increase in the difference between a company's revenues and its expenses.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Marginal Cost

The boost in comprehensive expenditure that comes from the generation of one more unit of a product or service.